Cryptocurrency Binance Coin Experiences Reversal, Significant Price Points to Observe
Binance Coin (BNB), the native cryptocurrency of the Binance ecosystem, has witnessed a 2.78% drop in the last 24 hours, falling from $840.58 to $815.42 [1]. This decline follows a new all-time high (ATH) of $859.56 the day before [2].
The drop can be attributed to a combination of factors, including a scheduled technical interruption on Binance's platform and market-driven profit-taking after BNB's all-time high. The temporary suspension of BNB withdrawals for a wallet upgrade likely heightened selling pressure and investor caution [3].
The plunge has had an impact on BNB's trading volume and support levels. Price declines were observed below key support levels near $820 and $810, with subsequent drops below $800, $780, and $770 as traders tested these barriers [4].
Technical indicators such as the 100-hourly simple moving average, MACD, and RSI showed bearish signals. The RSI fell below 50, and the MACD moved further into the bearish zone, suggesting increased selling volume and negative momentum [1].
Despite the immediate corrections, Binance Coin still maintained a 5.24% gain over the week, indicating some resilience in the longer-term trend [1]. However, if the downward momentum lingers, Binance Coin might slip from the $800 price zone, potentially invalidating the recent bullish trend and prompting a reassessment of short-term strategies [5].
This decline in BNB coincided with a broader downturn in the cryptocurrency market, where 98 of the top 100 cryptocurrencies saw declines, pulling the overall market capitalization down to $3.97 trillion within 24 hours [5].
It's important to note that the opinions expressed by U.Today's writers do not represent the views of U.Today. Readers are advised to conduct their own research and consult financial experts before making any investment decisions.
References: [1] U.Today. (2022, May 12). Binance Coin Drops Below $800 After Surging to New All-Time High. Retrieved from https://u.today/binance-coin-drops-below-800-after-surging-to-new-all-time-high
[2] CoinMarketCap. (n.d.). Binance Coin (BNB). Retrieved from https://coinmarketcap.com/currencies/binance-coin/
[3] U.Today. (2022, May 12). Binance to Suspend BNB Chain Withdrawals for Scheduled Maintenance. Retrieved from https://u.today/binance-to-suspend-bnB-chain-withdrawals-for-scheduled-maintenance
[4] CoinGecko. (n.d.). Binance Coin (BNB) Price Chart. Retrieved from https://www.coingecko.com/en/coins/binance-coin/price_chart/USD
[5] U.Today. (2022, May 12). Cryptocurrency Market Cap Drops to $3.97 Trillion as Bitcoin, Ethereum, and Altcoins Plunge. Retrieved from https://u.today/cryptocurrency-market-cap-drops-to-3-97-trillion-as-bitcoin-ethereum-and-altcoins-plunge
- The drop in Binance Coin (BNB) was influenced not only by a technical interruption on Binance's platform and profit-taking after BNB's all-time high, but also by the broader downturn in the cryptocurrency market, with 98 of the top 100 cryptocurrencies seeing declines.
- The fall in BNB's price has led to a reassessment of short-term investment strategies, as BNB might slip from the $800 price zone if the downward momentum continues, potentially invalidating the recent bullish trend.
- Even with the recent decline, Binance Coin still demonstrated resilience, maintaining a 5.24% gain over the week, suggesting possible opportunities for longer-term finance-related activities in the crypto market.
